If you're weighing a move to Houston or trying to budget for your first home here, this guide breaks down what it actually costs to own and run a house in the Houston area: the mortgage, property taxes, insurance, electricity, water and the everyday prices around them. Every figure comes from a public source checked on October 29, 2026, and each one is linked so you can see the date and the fine print yourself.

TL;DR

  • The Census Bureau's 2020-2024 survey puts the median value of an owner-occupied home in the city of Houston at $277,800, below the U.S. median of $332,700.
  • The median Houston homeowner with a mortgage spent $2,240 a month on housing costs in that survey, higher than the U.S. median of $1,963, largely because of property taxes and insurance.
  • Texas has no state personal income tax, which offsets some of that. Local governments fund themselves mostly through property and sales taxes instead.
  • Texas homes paid an average of 15.91 cents per kilowatt-hour for electricity in August 2026, below the U.S. average of 18.16 cents, but Houston summers mean long air-conditioning seasons.
  • Houston-area prices rose 1.3 percent in the year to August 2026, with energy up 17.2 percent and gasoline up 30.5 percent, while shelter costs dipped 0.6 percent.

What the numbers say about Houston housing costs

The most useful starting point is the U.S. Census Bureau's QuickFacts for Houston, Harris County and the U.S., which draws on the American Community Survey for 2020 to 2024. These are survey medians, not today's asking prices, but they show how Houston compares.

For the city of Houston, the survey reports:

  • Median value of an owner-occupied home: $277,800 (Harris County: $276,600; U.S.: $332,700)
  • Median monthly owner costs with a mortgage: $2,240 (Harris County: $2,155; U.S.: $1,963)
  • Median monthly owner costs without a mortgage: $685 (Harris County: $744; U.S.: $638)
  • Median gross rent: $1,361 (Harris County: $1,401; U.S.: $1,413)
  • Median household income: $64,813 (Harris County: $74,983; U.S.: $80,734)

The pattern is worth noticing. Houston homes are valued below the national median, yet monthly ownership costs run above it. The Census Bureau's "selected monthly owner costs" include the mortgage payment plus property taxes, homeowners insurance, utilities and any HOA or condo fees. In Houston, the taxes and insurance pieces do a lot of the work. A paid-off home still costs a median of $685 a month to own in the city, and that's mostly taxes, insurance and utilities.

If you want a dollar figure for a specific home, run it through our guide on how much house you can afford in Houston, which walks through the full monthly payment.

Property taxes: the biggest line after the mortgage

Texas doesn't levy a state property tax. According to the Texas Comptroller, the state doesn't set appraised values, adopt rates or collect property tax at all. Instead, your county appraisal district sets the value, and each local taxing unit (the city, the county, the school district, the community college district and often a utility or municipal utility district) sets its own rate. Your bill is the sum of all of them.

The same Comptroller report notes that, according to the Tax Foundation, Texas ranked sixth highest among the states for effective property tax rate in 2020, at 1.66 percent of home value. It also notes that the state ranked sixth lowest for total state and local tax burden in 2022, partly because Texas has no personal income tax.

For a Houston buyer, that means:

  • The tax bill depends on exactly where the home sits. Two houses a few miles apart can be in different school districts or MUDs with very different rates.
  • The homestead exemption lowers the taxable value of the home you live in, and it's worth filing as soon as you're eligible. See how the homestead exemption works in Harris County.
  • In newer suburbs, a MUD tax can add meaningfully to the total. Our guide to MUD taxes in Houston explains how to look them up.

For the rates and a worked example, read how much property taxes are in Houston.

No state income tax, but sales tax adds up

Texas has no state personal income tax, a point the Texas Comptroller states plainly. If you're moving from a state that taxes wages, that difference can cover a good part of a higher property tax bill. Whether it covers all of it depends on your income and the home you buy, so run both numbers rather than assuming.

The state does charge sales tax. Per the Comptroller's sales and use tax page, Texas imposes a 6.25 percent state rate on most retail sales, and cities, counties, transit authorities and special purpose districts can add up to 2 percent more, for a maximum combined rate of 8.25 percent. The Comptroller's Sales Tax Rate Locator on that page shows the exact rate for any address. Budget for it on the furniture, appliances and other purchases that come with a new house.

Homeowners and flood insurance

Insurance is the line that surprises most people moving to Houston. Houston's weather risk shows up in homeowners premiums, and flooding is a separate policy from standard homeowners coverage, as our flood insurance guide explains.

Rather than repeat it here, we cover both in depth:

Before you make an offer, get an actual insurance quote for the specific address and check its flood risk using our guide to the Houston flood zone map by address. An insurance quote is one of the few big costs you can pin down before you're under contract.

Electricity: lower rates, long summers

Most of Houston is in a part of Texas where you choose your retail electricity provider. The regulated utility runs the poles and wires and delivers the power, and you pick the company that sells it to you and sets your plan. Power to Choose, the official electric choice website of the Public Utility Commission of Texas, lists offers by ZIP code so you can compare plans side by side.

On price, Texas homes come out ahead of the national average. The U.S. Energy Information Administration's Electric Power Monthly reports an average residential price of 15.91 cents per kilowatt-hour in Texas for August 2026, compared with 18.16 cents for the U.S. as a whole. That's a preliminary statewide average across all plans, so your actual rate depends on the plan you pick.

The catch is usage. Houston's air-conditioning season is long, so a lower rate doesn't automatically mean a lower bill. When you tour a home, ask the seller for recent electric bills from a summer month, check the age of the AC system and look at insulation, windows and attic ventilation. An inspector can flag an aging system, which our guide to what happens during a Houston home inspection covers.

Water, wastewater and drainage

If you buy inside the City of Houston, the city bills water and wastewater together. Rates change every April 1. The city's single-family water and wastewater charge calculator estimates a monthly bill from your usage, using rates in effect from April 1, 2026, through March 31, 2027. The city notes that it applies to homes with a 5/8-inch meter, which about 75 percent of residential customers have, and that its estimate doesn't include the separate drainage fee.

Outside city limits, water and sewer often come from a MUD or a private utility, with its own rates and sometimes its own tax. Ask the seller or the title company who provides water before you buy, and ask for a recent bill.

Groceries, gas and everyday prices

For everyday prices, the best official measure is the Bureau of Labor Statistics' Consumer Price Index for the Houston-The Woodlands-Sugar Land area. It tracks how prices change over time; it doesn't say whether Houston is cheaper or pricier than another city.

In the 12 months ending August 2026, the latest release as of this writing:

  • All items rose 1.3 percent.
  • Food rose 2.2 percent, with groceries up 1.8 percent and restaurant meals up 2.5 percent.
  • Energy rose 17.2 percent, and gasoline was up 30.5 percent.
  • Shelter fell 0.6 percent, and rent of a primary residence fell 0.6 percent.

So housing costs were flat to slightly down over that year, while fuel was the big riser. Houston's average commute was 27.2 minutes in the Census Bureau's 2020-2024 survey, so how far you'll drive from a given neighborhood is a real part of your budget. BLS says the next Houston release, for October 2026, is scheduled for November 10, 2026.

Putting it together for a specific home

There's no single "cost of living in Houston" number that fits every household. A realistic budget comes from the address. Before you commit to a home:

  • Pull the property's tax history and current rates, including any MUD, and figure in your homestead exemption.
  • Get a homeowners insurance quote and a flood insurance quote for that address.
  • Ask for 12 months of electric bills, or at least July and August.
  • Confirm the water provider and get a recent bill.
  • Check whether there's an HOA, and what its dues and reserves look like.
  • Map your commute at rush hour.

If you're still deciding whether to buy at all, our buy-or-rent comparison for Houston lays out the trade-offs.

FAQ

Is Houston expensive to live in?

By home values, Houston is below the national median. The Census Bureau's 2020-2024 survey puts the city's median owner-occupied home value at $277,800 against $332,700 for the U.S. Monthly ownership costs run higher than the national median, though, because property taxes and insurance are significant.

Does Texas have a state income tax?

No. Texas has no state personal income tax, as the Texas Comptroller confirms. Local governments rely mainly on property and sales taxes instead.

What is the sales tax rate in Houston?

Texas charges a 6.25 percent state sales tax, and local jurisdictions can add up to 2 percent, for a maximum combined rate of 8.25 percent. Use the Comptroller's Sales Tax Rate Locator to see the exact rate for an address.

How much is electricity in Houston?

It depends on the plan you choose. The U.S. Energy Information Administration reports Texas homes paid an average of 15.91 cents per kilowatt-hour in August 2026, below the national average of 18.16 cents. Compare plans for your ZIP code on Power to Choose.

Why are monthly housing costs high if Houston homes cost less?

Property taxes and homeowners insurance. Texas funds local government largely through property taxes, and Gulf Coast weather risk raises insurance premiums. Both are part of the Census Bureau's monthly owner cost figures.

How much is the water bill in Houston?

It depends on usage and meter size, and rates change every April 1. The City of Houston's online calculator estimates your monthly water and wastewater charge from your usage. It doesn't include the separate drainage fee.

One last thing

The numbers in this guide are medians and averages, and every house is different. The fastest way to know what a specific home will cost you is to gather its tax, insurance and utility figures before you write an offer. If you'd like help pulling those together for homes you're considering, get in touch or start a home search.

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